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A loan was repaid in two annual instalments of Rs. 121 each. if the rate of interest be 10% per annum. compounded annually, the sum borrowed was ?
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- Rs. 200
- Rs. 210
- Rs. 217.80
- Rs. 280
Correct Option: B
Principal = (P.W. of Rs. 121 due 1 year later) + (P.W. of Rs. 121 due 2 years later)
= Rs. [ 121 /(1 + 10/100) + (121 / (1 + 10/100)2]
= Rs. 210
